ActiveVideo says interactive apps driving operator revenues

While the Cable Show is just getting underway, one of the emerging themes is interactive TV applications, and according to recent research by ActiveVideo Networks, those applications are starting to drive new revenue opportunities for cable operators and programmers.

The research data, which was collected from announced and unannounced ActiveVideo markets in the United States, indicated that reach, frequency and engagement are increasing at ActiveVideo-enabled TVs, including: previewing and upgrading to new levels of service, initiating and completing home shopping purchases, and laying the foundation for advertising opportunities through a pattern of consistent use.

“These metrics are important to our industry because they are visible proof of the value of interactive television within the media ecosystem,” said ActiveVideo CEO and President Jeff Miller. “The numbers show that when subscribers get the services they want, operators realize a significant return on their investments in interactivity. For the first time, we can prove that there is a clear and direct link between the deployment of ActiveVideo services and the bottom lines of operators and programmers.”

Among the examples cited by ActiveVideo Networks were:

An increase in tier upgrades of 545 percent over traditional Web and telephone ordering since the launch of an interactive TV preview channel in late December.

Initiation of t-commerce sessions by approximately 10 percent of ActiveVideo-enabled households and significantly increased sales totals since the initial system launch of home shopping in the fall of 2008.

An average ActiveVideo session length of 14.7 minutes – 359 percent more than the average online video view and 46 percent more than the average Hulu view.

Usage on more than 47 percent of applicable set-top boxes across all ActiveVideo-enabled households during 2008.

ActiveVideo said the dramatic increase in tier upgrades followed the launch of a preview channel that included content clips and other programming information, all of which can be navigated by the viewer’s remote control.

A one-click “order” button expedited the ability of subscribers to upgrade to the new service level. During the first 14 weeks of the campaign, ActiveVideo-enabled households upgraded at an annualized rate of 2.3 percent.